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Independent oversight of NAV set to grow

independent nav oversightThere is likely to be stronger demand from asset management companies for independent net asset value (NAV) oversight, according to a recent Funds Europe research report.

More than 70% of survey respondents said there will be stronger demand for independent oversight of fund accounting and related outsourcing services. In contrast, only 5% thought there would not be.

Fear of reputational damage (77%) and concerns over possible penalties from financial authorities for poor standards of oversight (63%) were the primary drivers for demand.

Even when asset managers have taken the decision to outsource NAV calculation to a third-party administrator, they will retain responsibility for oversight through the fiduciary, or stewardship, responsibility they bear to their investors.

The figures are in our report, ‘The future of investment Operations’, produced in association with Temenos.

Another finding was that 83% of asset managers said they expected to extend their strategic alliances with asset servicing and tech partners, enabling connection of mid- and back-office services straight to their front-office tools and investment book of record.

A link to the full report is below.

The future of investment operations report »

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